Chester Company has established internal control policies and procedures in order to achieve the following objectives:...
Chester Company has established internal control policies and
procedures in order to achieve the following objectives:
- 1) Effective evaluation of management performance.
- 2) Assure that the accounting records contain reliable information.
- 3) Safeguard the company's assets.
- 4) Assure that employees comply with company policy.
Which of these objectives are achieved by accounting controls?
Homework Answers
Out of the four mentioned objectives, the following objectives are achieved by accounting controls :
2) Assure that the accounting record contain reliable information : One of the main objectives of internal controls is to prevent, correct and detect financial misstatements thus making the accounting records much more reliable.
3) Safeguard the company's assets : Internal controls safeguard the company's assets by requiring proper authorization for the utilization of the company's assets thus making sure that no frauds occur and there is no mis-utilization of company's assets.
1) and 4) mentioned in the questions are not objectives which are achieved by accounting controls.
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